Western Union To Acquire Money-Transfer Rival Intermex for $500 Million

In a move to bolster its leading position in an increasingly difficult money-transfer market, The Western Union Co. announced Sunday it has a deal to acquire International Money Express Inc. for $500 million in cash.

Better known as Intermex, Miami-based International Money Express has built a retail network of 100,000 independent agents and 117 company-operated stores since its founding in 1994, according to the company’s 2024 annual report. Customers in the U.S., Canada, the United Kingdom, Spain, Italy and Germany can send money to more than 60 countries. Its primary corridors are the U.S. to Latin America and the Caribbean, especially Mexico, Guatemala, El Salvador, Honduras, and the Dominican Republic, the report says. In North America, Intermex has 10,000 sending locations compared with 40,000 for Western Union, according to an investor presentation from Western Union.

“This acquisition is a disciplined, strategic step that strengthens our North America operations and expands our presence with key consumer segments across the U.S.,” Devin McGranahan, president and chief executive of Denver-based Western Union, said in a statement. “Intermex has built a well-recognized brand, as well as strong agent and customer relationships. Together, we will expand our retail footprint, unlock operational efficiencies, and accelerate digital engagement.”

Western Union will pay $16 per share under the proposal, roughly a 50% premium to Intermex’s 90-day average share price. Western Union’s board of directors has approved the deal, but the acquisition still needs regulatory approvals and sign-off from Intermex’s board. The companies expect a mid-2026 closing.

“This agreement represents an exciting opportunity to provide Intermex’s shareholders with significant and certain value, accelerating our omni-channel strategy, while continuing to deliver for our customers,” Bob Lisy, chairman and CEO of Intermex, said in a statement. “This combination with Western Union brings together two complementary businesses that are well positioned to drive growth across North America.”

Despite being profitable—although on Monday Intermex reported declining quarterly revenue and net income—the publicly traded company has struggled to appease investors. Last September, investment firm Breach Inlet Capital, which at the time owned 2% of Intermex, urged the company to put itself up for sale, saying the public markets undervalued its business. In November, Intermex announced it would explore “strategic alternatives,” but in February the company ended the review with no deal in sight.

At the same time, the money-transfer business has become tougher as the U.S. cracks down on immigration—immigrants being a key base of customers sending money back to their home countries. It’s also getting more expensive. The “One Big Beautiful Bill” budget bill signed by President Donald Trump will impose a 1% tax on the amount of certain money transfers.

In a research note, financial analyst Cristopher Kennedy at Chicago-based William Blair says the valuation of the Western Union-Intermex acquisition is below other recent financial-technology deals and “likely reflects geopolitical challenges within U.S.–to–Latin America corridors, the upcoming 1% tax on cash-based remittances, and continued uncertainties within the traditional retail channel.” He added, citing figures from Mexico’s central bank, that inbound remittance volume to Mexico rose 1% in the March quarter but fell 11% in the June quarter.

In announcing the deal both CEOs mentioned the growth in the remittance business is in digital transactions. While Intermex’s revenues from digital channels grew nearly 59% last year to $20.6 million, they still represented only 4% of $554.8 million in wire-transfer and money-order revenues, according to the annual report.